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Occupational Therapy Article

Strategic Alliances in Healthcare: Lessons Learned From The Wizard of Oz

Last Updated Feb 2013


By: Iris Kimberg

healthcare allianceA strategic alliance is a formal relationship between two or more parties to pursue a set of goals or to meet a critical business need while remaining independent organizations. By utilizing multiple skill sets for a common goal, strategic alliances can be very useful in healthcare as a business tools that launches a great joint enterprise. Some strategic alliances, especially those employing co-branding, such as Jet Blue serving  Dunkin Donuts coffee,  or TGIF’s entire menu section devoted to Jack Daniel’s inspired recipes, have been longstanding ongoing successes for both companies.

The reasons for developing strategic alliances in healthcare become apparent once you understand the benefits. Other industries, having experienced periods of unparalleled change, embraced strategic alliances, and in doing so, became more efficient, better able to adapt and competitive. The end goal is always to increase your capability for success. This collaboration aims for a synergy where each party hopes that the benefits from the alliance will be greater than those from individual efforts. There is no better or more universal example than the four principals of the Wizard of Oz – alone, they were not successful in reaching their goal; together, they proved unstoppable!     

Alliances can emerge when potential partners have complementary relationships such that one organization uses some services or products of the other or when two organizations are vying for the same resource. In parts of the country, therapy practices are going from being “competitors” to therapy practices“frenemies” to “collaborators” by banding together for marketing and to inform consumers about their services. One such example is the Northwest Rehab Alliance, a network of privately practicing physical and occupational therapy providers. The network serves the majority of Oregon and Washington with over 260 locations serving the vast majority of the populace in the two-state region.

Shared locations such as banks in supermarkets, Starbucks in Barnes & Noble, McDonalds in Walmart are becoming increasing popular strategic alliances. In healthcare, we are now seeing physician groups in drug stores (“Docs in Duane Reade”). Increasingly, therapy practices are being strategically housed in gyms, community centers and after school sports complexes. This type of strategic alliance works if it is convenient for the consumer, if it helps keep a consumer in your establishment longer without totally distracting them, and if both appeal to the same type of client.

Cause - Related Marketing (CRM) is becoming a popular strategic alliance. A for-profit company (such as a therapy practice) associates itself with a nonprofit healthcare organization to raise money for the nonprofit while promoting the product and services of the for-profit. It is viewed as a twin-win situation as both organizations can benefit.

Viewed as socially responsible, it heightens the public awareness of both the company and the charity and can be a significant boon for both. You need to pay attention so the charity you are supporting does not do anything to damage either party’s reputation. For a therapy practice who supports a local or national charity drive, it can serve to heighten your customer loyalty, boost your practice’s public image, distinguish it from the competition, build employee morale and loyalty and even improve employee productivity, skills and teamwork.

healthcare organizationA strategic alliance can open new doors and avenues, maximize profits and increase business networks for future partnerships, in times of economic downturn, and in flourishing economies. The key to success is in knowing how to pick the right “dance” partner and how to structure and implement the alliance in healthcare to create differentiated offerings and generate new forms of business value.

About the Author: Iris Kimberg, MS PT, OTR, has worked in the non-clinical aspect of therapy for the past 30 years. She is the founder of New York Therapy Guide, a site dedicated to the growth, viability and success of therapists in the private sector. Iris now enjoys sharing her expertise and building business intelligence through workshops, webinars and private consultations. She can be reached at [email protected].

Click here to read more about Iris Kimberg.

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